HEATS Act
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The HEATS Act would exempt certain geothermal drilling projects on state and private land from needing a federal permit, as long as the U.S. government owns less than half of the underground geothermal resource being tapped and the operator has a state permit.
It would also declare that such projects are not major federal actions, freeing them from environmental review under NEPA, species consultation under the Endangered Species Act, and most historic-preservation review, a significant narrowing of federal oversight over geothermal energy development.
What this bill would do
What it would do
The bill would amend the Geothermal Steam Act of 1970 to bar the Interior Department from requiring a federal drilling permit for geothermal exploration and production on non-federal surface land, provided the United States holds less than 50 percent ownership of the subsurface geothermal estate and the operator has obtained a state permit for the activity. Such projects could begin 30 days after the state permit is submitted to the Secretary.
It would also specify that these projects are not "major federal actions" under the National Environmental Policy Act, are exempt from Endangered Species Act consultation requirements, and are exempt from National Historic Preservation Act review unless the state lacks its own historic-preservation law. The exemptions would not apply to Indian lands or resources held in trust for tribes, and royalty obligations to the United States would remain unchanged.
Key provisions
- 1Would bar Interior from requiring a federal drilling permit for geothermal activity on non-federal surface land where the U.S. holds under 50 percent of the subsurface estate and a state permit exists
- 2Would allow qualifying projects to begin 30 days after the state permit is submitted to the Secretary
- 3Would declare qualifying activity is not a major federal action, exempting it from NEPA environmental review
- 4Would exempt qualifying activity from Endangered Species Act consultation requirements
- 5Would exempt qualifying activity from National Historic Preservation Act review unless the state has no historic-preservation law of its own
- 6Would preserve existing royalty obligations to the United States and let the Secretary inspect sites to verify royalty accounting
- 7Would exclude Indian lands and resources held in trust for tribes from all of these exemptions
Who would be affected
Geothermal energy developers and operators working on state or private land where the federal government holds a minority subsurface interest, state permitting agencies, and the Interior Department, which would lose permitting authority over these projects. Indian tribes and Indian lands are explicitly excluded from the exemption.
Why it matters
Developers could move faster on qualifying geothermal projects, avoiding federal permitting delays and environmental, species, and historic-preservation reviews that can take months or years. Critics of reduced federal review may see this as weakening environmental safeguards, while the geothermal industry could see faster project timelines on land where the federal stake is limited.
What would change
Changes to existing law
Amends Geothermal Steam Act of 1970 (Sec. 2)
Adds a new section eliminating the federal drilling permit requirement for qualifying geothermal activity on non-federal surface land.
Amends National Environmental Policy Act of 1969 (Sec. 2)
Declares qualifying geothermal activity is not a major federal action, removing it from NEPA environmental review.
Amends Endangered Species Act of 1973 (Sec. 2)
Exempts qualifying geothermal activity from Section 7 interagency consultation requirements.
Amends National Historic Preservation Act (Sec. 2)
Exempts qualifying activity from being treated as an undertaking unless the state has no historic-preservation law.
Agencies directed to act
Effective dates
- Qualifying geothermal projects may begin
How implementation would work
Operators would submit a state-issued permit to the Interior Secretary rather than seeking a federal drilling permit, and could begin work 30 days after submission. The Secretary would retain authority to conduct onsite reviews and inspections to verify royalty payments and production accounting. No additional federal environmental, species, or historic-preservation review would be triggered unless the relevant state lacks its own historic-preservation law, in which case federal historic review would still apply.
Legislative status & sources
Latest action
Received in the Senate and Read twice and referred to the Committee on Energy and Natural Resources.
Official CRS summary
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This bill exempts certain geothermal activities on state and private lands (except Indian lands) from drilling permit requirements as well as environmental and historic preservation review requirements.
First, the bill prohibits the Department of the Interior from requiring an operator to obtain a drilling permit under the Geothermal Steam Act of 1970 for any geothermal exploration and production activity conducted on a nonfederal surface estate (i.e., the part of the estate that is above ground) if (1) the United States holds an ownership interest of less than 50% of the subsurface geothermal estate to be accessed by the proposed action, and (2) the operator submits to Interior a state permit to conduct the geothermal exploration and production activity on the nonfederal surface estate.
Next, the bill states that such geothermal exploration and production activity is not considered a major federal action under National Environmental Policy Act of 1969 (NEPA). Thus, such activity does not trigger NEPA's environmental review requirements.
In addition, the bill exempts such activity from the consultation requirements under the Endangered Species Act of 1973. It also exempts the activity from review under the National Historic Preservation Act unless the state in which the activity occurs does not have a state law that addresses the preservation of historic properties.
Legislative subjects
Alternative and renewable resources; Energy; Energy revenues and royalties; Indian lands and resources rights; Licensing and registrations; Mining
Committee report
H. Rept. 119-613